CBIC Instruction No. 02/2025-GST: "Procedure for Appeals on Interest and/or Penalty Under Section 128A of CGST Act" The CBIC has issued Instruction No. 02/2025-GST Dated 7th February 2025, providing clarity on the procedure for appeals filed by the department concerning interest and/or penalty disputes under Section 128A of the CGST Act, 2017. This step aims to reduce unnecessary litigation and simplify compliance for taxpayers. Section 128A of the CGST Act allows for the waiver of interest or penalty or both, subject to conditions, in cases arising under Section 73 of the CGST Act for the financial years 2017-18, 2018-19, and 2019-20. The procedure is governed by Rule 164 of the CGST Rules, 2017. Circular No. 238/32/2024-GST (Dated 15th October 2024) clarified various doubts regarding Section 128A. However, field formations sought further clarification on handling department appeals in cases involving interest and/or penalty only. Clarifications on Appeals: A taxpayer should not be denied the benefit of Section 128A if they meet its conditions, regardless of whether: The department has already filed an appeal. The appeal is under process due to technical reasons. The intention of Section 128A is to reduce litigation, not escalate it over minor technicalities. Revised Procedure for Department Officers: If the taxpayer fulfills Section 128A conditions (tax fully paid and disputes involve interest/penalty only): Withdraw department appeals already filed. For cases under review stage, officers should accept the order passed under Section 73 without pursuing further disputes.